Grayscale Investments, the largest crypto asset manager, is shifting strategy during the midst of the market downturn by setting up an entity seeking to buy Bitcoin mining equipment at distressed prices.
The New York-based firm will form Grayscale Digital Infrastructure Opportunities LLC (GDIO), which will be available to accredited investors such as hedge funds and family offices at a minimum investment of $25,000. GDIO plans to purchase the computer rigs used in mining and hopes to profit by selling the Bitcoin earned in the process, Grayscale’s CEO Michael Sonnenshein told Bloomberg News. Grayscale expects to finish the funding before the end of the fourth quarter. This is likely a three-to-five-year investment, similar to the kind of terms they would see when investing in private equity or infrastructure in other asset classes, he said.